Get Your Small Business Tips for Payroll!

What kind of feeling do you get when you hear the words "Payroll"?  If you feel joy and excitement, you more than likely the energetic professional who has worked their tail off and payday is the reminder of why you do it.  But, if you have a sick feeling to your stomach then your more than likely the manager or business owner responsible to processing and analyzing the payroll for your team.  A great deal of time is dedicated to the payroll process and management may feel anxiety because they do not have a team or outsourcing company to support with this sensitive information.

​This information should have its own set of extensively documented procedures inclusive of rules and regulations, along with a dedicated employee to manage the weekly or bi-weekly processing.   A dedicated employee would allow for management  to stay abreast of the state and federal government changes.  A simple payroll for any business would be processing the same monthly salary for one employee; while a more complex payroll may have many staff, paid different amounts each week, with frequent joiners and leavers.  

With that being said, here are just a few tips:

• ​Outsourcing:  One way a small business can organize its payroll is to outsource it – typically to their accountant or bookkeeper. Larger businesses may use a specialist payroll firm.
• Handling payroll in-house:  If you choose to manage the payroll in-house, you will need to decide who is going to run it and what tools they will use. In very small companies, it is often the job for one of the directors, but larger firms delegate it to an individual, a team or even a department.
• Payroll system:  It is still possible to calculate tax and national insurance by hand and issue handwritten pay slips without using a computer. Most returns must be sent to HMRC electronically, so only the most stubborn of employers still refuses to use a computerized payroll system. A good system will do the necessary calculations, produce pay slips, send returns to HMRC and print P45, P60 and other forms for employees. The types of calculations include tax, national insurance, student loans, sick pay, maternity pay and others, according to your needs.

​Stay aware.  Stay prepared.  Remain knowledgeable in order to avoid the fines and penalties that can be costly with this process.

​All achievements, all earned riches, have their beginning in an idea. – Napoleon Hill